In STANBIC’s recently released nine-month financial statements, the bank reported double-digit earnings. Gross earnings grew 60% y/y to N331.6bn, driven by a 72% growth in interest income to N184.6bn, 10% ahead of our forecast. Meanwhile, interest expenses grew by 134% y/y to N64.1bn, outpacing our estimate by 12%. The growth in interest income was driven by a 46% ytd expansion of the bank’s loan book, while interest expense growth was the result of a 42% rise in customer deposits, as well as a 57% rise in borrowings, a result of the currency devaluation. Overall, net interest income rose 51% y/y to N120.5bn, 9% above our N109.7bn expectation.
